The US-based Commercial Metals Company (CMC) has announced that it has entered into a definitive agreement to acquire certain US rebar steel mill and fabrication assets from Gerdau S.A., a producer of long and specialty steel products in the Americas, for a cash purchase price of $600 million, subject to customary purchase price adjustments.
The acquisition includes 33 rebar fabrication facilities in the United States, as well as steel mills located in Knoxville, Tennessee; Jacksonville, Florida; Sayreville, New Jersey and Rancho Cucamonga, California, with an overall annual mill rolling capacity of 2.5 million mt.
Upon completion of the acquisition, CMC will have an expanded geographic footprint in the largest construction regions in the US. The acquisition will increase CMC's annual rebar and fabrication capacity and allow for the more efficient utilization of its asset base to better serve customers. After adding the incremental 2.7 million mt of melt capacity, CMC will have approximately 7.2 million mt of global melt capacity at the close of the transaction.